Petrol retail prices have
continuously increased over the past few months, directly affecting transport
firms. The domestic retail price of petroleum increased by 319 VND to reach 18,111 VND (79 US cents) per litre on September 20.

Representatives from taxi
companies said transport costs could be increased by 500 VND per kilometre in
the future. The adjustment could make it harder for traditional taxi firms to
compete with Uber and Grab.

Some transport businesses
in Hanoi told online newspaper vov.vn that they
were preparing to increase transport costs by 7 percent. However, the exact
adjustment would be carefully calculated as petrol price was not stable.
Transport firms would end up spending money and have to undertake complicated
procedures for each adjustment.

Dau Xuan Ngoc, director of
Thien Truong Trade, Tourism and Investment Company which provides transport
services on Hanoi-Thai Binh, Hanoi-Nam Dinh and Hanoi-Nghe An routes, said
transport firms have not made profits with the current petrol price at over 18,000 VND per litre.

He told the newspaper that
they were trying to reduce some costs to make up for the hike in the petrol
price while waiting for instructions from State management agencies such as the
Department of Finance and the Department of Transport. They also asked the
management board of bus stations to reduce service costs.

Prices of building
materials have also been rising in Hanoi. The price of sand was 290,000 VND to 420,000 VND per cu.m, increasing 5 percent in the past two weeks.

Tran Ngoc Duc, a contractor
in the city’s Hoang Mai district, said the price of cement had also risen by 10,000 VND per 100 kilos.

The municipal Department of
Industry and Trade has asked market watch offices to implement checks of the
products to ensure there are timely solutions to stabilise the market and
ensure supply.

Tran Thi Phuong Lan, the
department’s deputy director, said the city had instructed businesses to
participate in price stabilisation programmes of essential products in the
city.-VNA